MNB raises 1-week deposit rate by 50 bp to 5.85%

MNB

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The National Bank of Hungary (MNB) raised the rate for its one-week deposit facility by 50 bp to 5.85% ahead of a tender on Thursday, according to a report by state news wire MTI.

The rate is 245 bp over the 3.4% base rate.

MNB raised the one-week deposit rate by 75 bp a week earlier, acknowledging the impact of the war in Ukraine.

On Tuesday, after policymakers widened the central bank's interest rate corridor by raising the O/N and one-week collateralized loan rates 100 bp to 6.4%, they said MNB is prepared to use the one-week deposit rate to "respond quickly and flexibly to commodity and financial market risks arising from the rapidly changing environment".

"The [MNB] stands ready to intervene in order to ensure the stability of the financial system using all instruments of its monetary policy toolkit," the rate-setters added.

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